December RUT Iron Condor order filled.
Order executed for this new position:
- SELL RUT December 1170 Calls.
- BUY RUT December 1220 Calls.
- SELL RUT December 1170 Puts.
- BUY RUT December 1120 Puts.
Order was filled as an "Iron Condor" for $30.67 net credit (all four legs).
BUY RUT December 1250 Call.
Order for extra long call was filled for $.75.
Margin/Risk is calculated by the width of the wings ($5,000), less credit received, plus the cost of the extra long call.
Margin/Risk for this trade: $2,008.
Target Gain: 5% of the gross margin ($250/contract)
Max loss: 10% of the gross margin ($500/contract)
Below is the risk graph of this week's position as shown on my broker's platform:
RUT December Iron Butterfly:
The adjustment trigger points for this position are if RUT moves up or down 10 points from the center of the Iron Butterfly. Adjustment point on the call side would be if RUT reaches 1180, and the downside adjustment would be at 1160. As the Iron Butterfly usually doesn't get into trouble as much on the downside, we may let it go a bit below 1160 before adjusting, depending on market conditions at the time the trigger is reached. Expiration breakeven on the downside is at 1140, so we have a little "wiggle room" on the downside adjustment.
For those unfamiliar with the strategy, the trade management guidelines were updated on September 4, and can be found here:
Link to Articles
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,